Location: Salem, Oregon

State Street Apartments is a 10-unit multifamily community consisting of four duplexes and two detached single-family homes, located in a residential corridor of Salem, Oregon. Acquired in late 2022 through a creatively structured seller-financed deal, the asset was in need of substantial repairs and repositioning. Leveraging a 91% seller carry, the project was self-capitalized and executed with minimal equity outlay, resulting in a high-yield value-add opportunity.

Since acquisition, the property has undergone full interior renovations, infrastructure improvements, and curb appeal upgrades—transforming it into a clean, safe, and desirable rental community. With a projected $600,000 profit and an anticipated Average Annual Return (AAR) of 80%, State Street continues to produce strong operational performance while delivering quality housing to long-term tenants.

Property Details

• Type of Property: Single-Story Multifamily (4 Duplexes, 2 Single-Family Homes)

• Status: Stabilized

• Year Built: 1949

• Total Units: 10

• Unit Mix: All single-story units, ideal for long-term renters and families

• Tenant Profile: Workforce housing, families, and stability-seeking tenants

Investment Overview

• Investment Date: December 29, 2022

• Exit Date: Still Held

• Initial Investment Amount: $150,000

• Projected Profit: $600,000

• Projected AAR: 80%

• Hold Strategy: Cash-flowing hold with long-term appreciation potential

Capital Structure

• Debt: 91% seller-financed

• Equity: Remaining capital funded internally by operating partners

• Leverage Strategy: Highly efficient structure with minimal equity requirement and strong upside

Development Strategy

• Unit Renovations: Heavy interior turns across all units to bring them to market-ready condition

• Exterior Upgrades: Landscaping, tree trimming, and site beautification to improve tenant experience and asset value

• Infrastructure Repairs: Road resurfacing and pothole repair to enhance safety and longevity

• Stabilization: Rapid re-tenanting at market rents with high occupancy

Investment Thesis

State Street Apartments represents a highly successful execution of a creative finance, value-add strategy in a strong rental market. The ability to acquire the property through a seller carry with minimal capital, combined with high-impact improvements and operational upgrades, has resulted in outsized projected returns. The stabilized asset now generates consistent income with minimal turnover, offering continued upside through organic rent growth and long-term equity appreciation.